The cost of living is a huge consideration when deciding on where to retire. However, a tax on your retirement funds and or Social Security might be your worst nightmare. Before selling your home to downsize in a picture-perfect retirement community, beware of high retiree taxes.
The states average tax rate is more than 13%. You could easily move to Nevada or Florida, where the comparable rate is less than 8%.
13 States That Tax Social Security Benefits
Some of these states include Colorado, Connecticut, and New Mexico tax Social Security benefits.
5 States Have No Sales Tax
Some of these states include Oregon, Alaska, and New Hampshire, have no sales tax.
No Income Taxes
Some states with no income taxes include Nevada, South Dakota, and Wyoming, among others.
New York City
This state takes an additional 3% to 4% of taxable income above and beyond the state levy.
Most Tax-Friendly States
There are still a handful of tax-friendly states for retirees. Some of these include Alaska, Delaware, Georgia, Nevada, and Wyoming.